Recent interest rate reductions have caused many people to consider purchasing a home. According to the real estate information company Zillow, that trend will continue in the new year. Here are the predictions from experts who keep their eye on the real estate market: The Federal Reserve reduced the interest rate 3 consecutive times in 2024,

The Federal Reserve kept its key interest rate unchanged as officials grappled with uncertainty caused by inflation and President Trump's plans.

Rates on 30-year refinance loans dropped another 2 basis points Wednesday, nudging to average down to 7.03%. That's now the cheapest level for 30-year refi rates since Dec. 18. In September, 30-year refinance rates plunged to a two-year low of 6.01%. But they then surged as high as 7.30%—before recently moving lower.

The Fed held interest rates steady as it continues to combat inflation. President Trump wants to see lower rates, but some of his policies could fuel more price hikes.

VioletaStoimenova / Rates on 30-year refinance loans dropped another 2 basis points Tuesday, nudging to average down to 7.05%. That's now the cheapest level for 30-year refi rates since Dec. 18. In September,

President Trump has said he will "demand" lower interest rates, raising questions about his ability to influence the Federal Reserve.

These are today's mortgage and refinance rates. Mortgage rates may only drop a little bit this year since the economy is still running strong.

The U.S. housing market has been hurt by volatile mortgage rates, but a severe shortage of available homes is the most critical obstacle for would-be buyers, Zillow CEO Jeremy Wacksman said.

These are today's mortgage and refinance rates. The Fed isn't expected to cut rates this week, but we may see mortgage rates fluctuate anyway.

Mortgage rates declined by one basis point this week, not enough to change the equation to bring consumers back into the housing market, Freddie Mac said.

Trump, who appointed Jerome Powell, has called for lower interest rates and said he believes the president should get a say on the Fed’s rate decisions.